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Ordnungspolitische Überlegungen zu einer Insolvenzordnung für Staaten / Principles for an Insolvency Code for States

Author

Listed:
  • Beck Hanno
  • Wentzel Dirk

Abstract

With reference to the current European crisis of highly indebted states and a common currency under pressure, the concept of a bankruptcy code for states is presented. The article examines the principles of such a code, analyzes interdependencies to other institutional parts of the economy and financial markets and discusses all pros and cons of such a proposal. Connected to the framework of a bankruptcy code, the idea of an international insurance system for government bonds is developed. Countries with poor economic performance and a high debt ratio have to pay higher premiums so that a direct incentive exists in order to implement a more solid budget policy.

Suggested Citation

  • Beck Hanno & Wentzel Dirk, 2011. "Ordnungspolitische Überlegungen zu einer Insolvenzordnung für Staaten / Principles for an Insolvency Code for States," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 62(1), pages 71-100, January.
    • Handle: RePEc:bpj:ordojb:v:62:y:2011:i:1:p:71-100:n:5
    DOI: 10.1515/ordo-2011-0105
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    References listed on IDEAS

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